TripAdvisor, Tesla sink as momentum plays lose favor

C.H. Robinson is the sole gainer in Nasdaq 100

SaumyaVaishampayan

SAN FRANCISCO (MarketWatch) — TripAdvisor Inc. and Tesla Motors Inc. were among the stock market’s biggest losers on Thursday as so-called momentum stocks headlined the broad selloff that dragged the Nasdaq down 3.1%, its biggest one day percentage drop since 2011.

All three indexes posted steep losses with the Dow Jones Industrial Average
DJIA, +0.08%
down 1.6%, the S&P 500 Index
SPX, +0.04%
down 2.1% and the Nasdaq Composite Index
COMP, -0.23%
falling 3.1%.

Decliners

TripAdvisor Inc.
TRIP, +2.17%
shed 7.1%, coming off two sessions of gains. The company is expected to face more competition in the wake of Google Inc.’s
GOOG, +0.48%
deal with Room 77, which is expected to bolster Google’s hotel search functions, analyst Jordan Rohan at Stifel Nicolaus said in a report released earlier this week.

Bloomberg

EBay reaches an agreement with activist investor Carl Icahn.

Tesla
TSLA, +0.43%
shares dropped 5.9%. The stock, which had surged 344% in 2013, is down 14% over the past 30 days.

Bed Bath & Beyond Inc.
BBBY, -0.22%
shares tumbled 6.2%. The company said late Wednesday it expects fiscal first-quarter earnings of 92 cents a share to 96 cents a share, missing expectations of $1.02 a share. Fiscal fourth-quarter profit fell to $1.60 a share from $1.68 a share while revenue slipped to $3.2 billion from $3.4 billion.

Alexion Pharmaceuticals Inc.
ALXN, -1.83%
fell 7.5% after a three-day winning streak. Gilead Sciences Inc.
GILD, -1.04%
was down 7.3%. Alexion and Gilead are among the biopharmaceutical stocks that have come under selling pressure recently due to worries that the sector is overbought.

Imperva Inc.
IMPV, -1.18%
shares tumbled 44% after the network security company forecast a deeper loss for its first quarter, and a less revenue, than it previously estimated.

Gainers

Windstream Holdings Inc.
WIN, -0.68%
shares rose 2.1%. It’s not immediately clear what is lifting the shares of the rural telecommunications company, but the stock is up more than 9% year to date.

C.H. Robinson Worldwide Inc.
CHRW, -0.36%
shares gained 1.6%. Cleveland Research said C.H.Robinson’s margins are improving due to higher volumes and rate increases, according to TheFlyOnTheWall. C.H. Robinson was the only stock in the Nasdaq 100 to finish in the positive.

Rite Aid Corp.
RAD, +2.40%
shares jumped 8.4%. The company said Thursday its adjusted fourth-quarter per-share profit rose to 10 cents from 7 cents in the year-earlier period, beating expectations. Net income dropped to $55.4 million from $123.1 million while revenue rose to $6.6 billion from $6.5 billion, compared with analyst expectations of $6.57 billion, according to FactSet.

HPQ: Hewlett-Packard Co.
HPQ, -0.23%
shares came off earlier highs to gain 0.2%. Analysts at Deutsche Bank initiated coverage of the stock at a buy with a price target of $40. “H-P is mid-way through a 5-year turnaround, and thus far has done a good job of stabilizing the business. Now the company needs to prove it can expand,” analysts said in a report. They added that despite the decline in PCs and printers, the company’s IT hardware portfolio is well positioned for the next phase due to its strength in converged infrastructure and Big Data.

FDO: Family Dollar Stores Inc.
US:FDO
shares slid 3.2% after the discount retailer said its second-quarter profit and revenue both fell more than analysts had expected, with per-share earnings falling to 80 cents from $1.21 cents. Family Dollar also said it would close about 370 stores that were underperforming.

EBAY: EBay Inc.
EBAY, +0.77%
shares fell 3.2%. The company said Thursday it reached an agreement with activist investor Carl Icahn that ends the proxy contest ahead of eBay’s annual meeting. EBay agreed to nominate David Dorman as an independent director to the board in exchange for Icahn withdrawing both his proposal to separate PayPal and his two nominees to the board. Icahn, however, said he continues to believe that a breakup of PayPal and eBay “at some point in the near future” would be beneficial.

SLM: SLM Corp.
SLM, +1.44%
edged up less than 0.1%. Sallie Mae said Thursday that its board approved the spinoff of Navient, its loan management, servicing and asset recovery unit, from its consumer banking business.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.